Regulation not needed for new Telecom service

Tuesday 21st December 2010

The Commerce Commission has decided that Telecom's new wholesale broadband service VDSL2, or very-high-speed digital subscriber line 2, does not need to be regulated.

The new service incorporated features not included in the regulated unbundled bitstream access (UBA) service, and it was appropriate that the market determine the price for the enhanced service, the commission said today.

UBA is a regulated wholesale service that allows telecommunications companies to supply a range of broadband services to retail customers.

Telecom Wholesale is required to provide those services covered by the UBA service description on a non-discriminatory basis to its own retail arm Telecom Retail as to other telecommunications companies.

Telecommunications Commissioner Ross Patterson said the commission was satisfied that the new service had higher specifications, which differentiated it from the regulated service.

"There has been much debate about the willingness of consumers to pay for upgraded broadband services, and it is appropriate that the price is set by the market," Patterson said.

NZPA

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